Ocado Share Price: Next Levels to Watch Will Be Support Levels at 465p and 384p.

Ocado share price has been on a decline for the past few days despite an improvement in its first-quarter results. The stock has climbed by 11.68% in the past week but remains 17.75% lower in the year-to-date. The company’s market cap currently stands at £4.276 billion.

Ocado’s Outlook

Ocado share price has been hovering around its highest level since March 3 after the company posted better-than-expected results for the first quarter. In its recent trading statement, Ocado announced that its retail revenue for Q1 came in higher at £584 million, a 3.4% jump compared to the previous year.

The company’s average orders for the same period climbed by 3.6% to 381k, while the number of active customers rose by 13.8%. Ocado’s average order basket remained unchanged over the quarter amid inflation concerns. The company’s joint venture with Marks and Spencer performed relatively well in the first quarter despite surging inflation.

Ocado recently won a lawsuit against Norwegian rival Autostore Holdings Ltd, boosting the company’s shares. The two companies have been locked in a legal battle for several years over Ocado’s warehouse system where robots are used to move customers’ orders.

The Ocado stock price ended its previous trading session 1.98% lower at 513.6p as most European stocks closed marginally lower on the back of a stronger Pound. The British pound traded higher against the US Dollar on Tuesday, hitting a 10-month high of $1.2525. Surging inflation, as well as the continued cost of living crisis, have continued to weigh on retailers such as Ocado.

Ocado Share Price Forecast

The daily chart shows that the Ocado share price has staged a strong comeback in the past few weeks despite its recent pullback. The stock has managed to move above the 25-day moving average but remains below the 50-day MA. Its Relative Strength Index (RSI) has moved lower but remains in the neutral zone.

Therefore, the Ocado share price is likely to continue falling in the medium term as sellers target the resistance level at 465p. If this happens, the next logical support level will be 384p, the lowest level since October 2022. However, a move above the resistance level of 609p will invalidate the bearish view.

OCDO Price Chart

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